Sapphire Textile Mills Limited

Horizontal Analysis of Balance

Sheet

Sapphire Vertical Analysis of Balance Sheet

Textile Mills
Limited Vertical Analysis of Income
Statement

Horizontal Analysis of Income

Statement
RATIOS
 • Sapphire Group is a Pakistani industrial
conglomerate largely focused on
the textile industry. Based in Lahore, it is
Introduction an integrated textile group,
manufacturing cotton yarn, fabric, and
finished garments.
Current ratio
Sapphire Textile 2014 2015 2016 2017 2018

Sapphire 2014 2015 2016 2017 2018

Current asset 8,324,019,651 9,207,109,411 11,583,158,478 14,030,361,000 15,347,245,872
Textile
Current asset 8,324,019,6 9,207,109, 11,583,158, 14,030,361, 15,347,245,
51 411 478 000 872
Current 5,944,456,2 7,800,847, 9,676,419,0 11,806,321, 12,971,562,
Current liabilities liabilities5,944,456,219 19 7,800,847,121
121 9,676,419,041
41 170 11,806,321,170
256 12,971,562,256
Current ratio 1.40029959 1.1802704 1.19705011 1.18837704 1.18314552
8 59 8

Current ratio 1.400299598 1.180270459 1.19705011 1.18837704 1.183145528

 Sapphire Textile
1.45

1.4

1.35

1.3

1.25
Sapphire Textile

1.2

1.15

1.1

1.05
2014 2015 2016 2017 2018
 Net Working Capital to Sale Ratio
Sapphire Textile 2014 2015 2016 2017 2018

Total current assets 8,324,019,651 9,207,109,411 11,583,158,478 14,030,361,000 15,347,245,872

Total current liabilities 5,944,456,219 7,800,847,121 9,676,419,041 11,806,321,170 12,971,562,256

Sales 25,411,301,753 23,315,336,620 23,110,564,181 25,583,975,268 28,896,327,034

Net working capital to sale 0.09 0.06 0.08 0.09 0.08

ratio
 Sapphire Textile

0.09

0.08

0.07

0.06

0.05
Sapphire Textile

0.04

0.03

0.02

0.01

0
2014 2015 2016 2017 2018
 Total Assets Turn Over

Sapphire Textile 2014 2015 2016 2017 2018

Sales 25411301753 23315336620 23110564181 25583975268 28896327034

Total assets 22,050,550,287 28,087,804,661 31,800,656,888 42,532,024,018 42,330,151,035

Total assets 1.152411229 0.830087538 0.726732289 0.601522638 0.682641718

turn over
 Sapphire Textile
1.4

1.2

0.8

Sapphire Textile

0.6

0.4

0.2

0
2014 2015 2016 2017 2018
 Fixed Assets Turnover

Sapphire Textile 2,014 2,015 2,016 2,017 2,018

Sales 25411301753 23315336620 23110564181 25583975268 28896327034

Fixed assets 13,726,530,636 18,880,695,250 20,217,498,410 28,501,663,018 26,982,905,163

Fixed assets turnover 1.85125451 1.234877017 1.143097119 0.897630965 1.070912374

 Sapphire Textile
2

1.8

1.6

1.4

1.2

0.8
Sapphire Textile
0.6

0.4

0.2

0
2014 2015 2016 2017 2018
 Return on Assets
Sapphire Textile

2,014 2,015 2,016 2,017 2,018

Net income

983,404,894 1,034,135,461 1,448,214,006 2,721,746,595 1,595,059,020

Total assets

22050550287 28087804661 31800656888 42532024018 42330151035

Return on assets

0.044597748 0.036817953 0.04554038 0.063992877 0.037681392

 Sapphire Textile
0.07

0.06

0.05

0.04

Sapphire Textile
0.03

0.02

0.01

0
2014 2015 2016 2017 2018
 Quick Ratio

Sapphire Textile

2014 2015 2016 2017 2018

Total current assets

Quick Ratio
8324019651 9207109411 11583158478 14030361000 15347245872
Total current liabilities

5944456219 7800847121 9676419041 11806321170 12971562256

Stock in trade

3776222400 3969334963 4281470839 5326588336 5471700519

Quick ratio

0.765048489 0.671436623 0.754585721 0.737212934 0.761322743

 Sapphire Textile
0.78

0.76

0.74

0.72

0.7
Sapphire Textile

0.68

0.66

0.64

0.62
2014 2015 2016 2017 2018
 Number of Days of Inventory

Sapphire
Textile
2,014 2,015 2,016 2,017 2,018
Stock in trade
3776222400 3969334963 4281470839 5326588336 5471700519
Cost of goods sold
/365
22,623,272,169 20,707,601,784 20,547,990,291 22,906,156,922 25,360,086,618
Number of days
of inventory
60.9249257 69.9649953 76.0530268 84.8769503 78.75251846
 Sapphire Textile

90

80

70

60

50
Sapphire Textile

40

30

20

10

0
2014 2015 2016 2017 2018
 Operating Profit Margin

Sapphire
Textile
2014 2015 2016 2017 2018
Operating
income
1985976417 1847805762 2609779353 3944309779 3340232478
Sales
25411301753 23315336620 23110564181 25583975268 28896327034
Operating
profit margin
0.078153274 0.079252802 0.112925817 0.154171107 0.11559367
 Sapphire Textile
0.18

0.16

0.14

0.12

0.1

Sapphire Textile
0.08

0.06

0.04

0.02

0
2014 2015 2016 2017 2018
 Gross Profit Margin

Sapphire
Textile

2,014 2,015 2,016 2,017 2,018

Gross profit
2,788,029,584 2,607,734,836 2,562,573,890 2,677,818,346 3,536,240,416
Sales
25411301753 23315336620 23110564181 25583975268 28896327034
Gross profit
margin

0.109716126 0.11184633 0.110883225 0.104667798 0.122376813

 Sapphire Textile

0.125

0.12

0.115

Sapphire Textile
0.11

0.105

0.1

0.095
2014 2015 2016 2017 2018
 Net Profit Margin

Sapphire Textile

2,014 2,015 2,016 2,017 2,018

Net income

983,404,894 1,034,135,461 1,448,214,006 2,721,746,595 1,595,059,020

Sales

25411301753 23315336620 23110564181 25583975268 28896327034

Net profit margin

0.04 0.04 0.06 0.11 0.06

 Sapphire Textile

0.12

0.1

0.08

Sapphire Textile
0.06

0.04

0.02

0
2014 2015 2016 2017 2018
 Inventory Turnover

Sapphire Textile

2014 2015 2016 2017 2018

Cost of goods sold

22623272169 20707601784 20547990291 22906156922 25360086618

Stock in trade

3776222400 3969334963 4281470839 5326588336 5471700519

Inventory turnover

5.99 5.22 4.80 4.30 4.63

 Sapphire Textile
7

Sapphire Textile
3

0
2014 2015 2016 2017 2018
 Time interest coverage ratio

Sapphire Textile 2014 2015 2016 2017 2018

Profit from 1985976417 1847805762 2609779353 3944309779 3340232478

operations

Finance cost 715768385 669410841 873059367 968945979 1391490732

Time interest 2.774607623 2.760346336 2.989234698 4.070722068 2.400470518

coverage ratio
 Equity ratio

Sapphire 2014 2015 2016 2017 2018

Textile

total equity 13340615177 14370171153 14903981167 16793923250 16022255202

TOTAL ASSETS 22050550287 28087804661 31800656888 42532024018 42330151035

equity ratio 0.605001463 0.511616031 0.468668972 0.394853611 0.378506923

 Sapphire Textile
0.7

0.6

0.5

0.4

Sapphire Textile
0.3

0.2

0.1

0
2014 2015 2016 2017 2018
 Debt to equity ratio

Sapphire 2014 2015 2016 2017 2018

Textile

total non- 2,765,478,891 5,916,786,387 7,220,256,680 13,730,948,198 13,336,333,577

current
liabilities

total equity 13340615177 14370171153 14903981167 16793923250 16022255202

Debt to equity 20.73% 41.17% 48.45% 81.76% 83.24%

Ratio
 Sapphire Textile

90.00%

80.00%

70.00%

60.00%

50.00%
Sapphire Textile

40.00%

30.00%

20.00%

10.00%

0.00%
2014 2015 2016 2017 2018
Accounts Receivable Turnover in Days

Sapphire Textile 2014 2015 2016 2017 2018

Sales and services 25411301753 23315336620 23110564181 25583975268 28896327034
Other receivables 54051052 145975668 170505333 266589119 566397978
average A/R 66557445 100013360 158240500.5 218547226 416493548.5
Account Receivable 381.7950306 233.1222211 146.0470872 117.0638298 69.38001114
Turnover
Accounts Receivable 0.956010348 1.56570231 2.499193972 3.117957106 5.260881254
Turnover in Days
 Return on Equity

Sapphire Textile 2014 2015 2016 2017 2018

net income 983,404,894 1,034,135,461 1,448,214,006 2,721,746,595 1,595,059,020

total equity 13340615177 14370171153 14903981167 16793923250 16022255202

Return on Equity 0.073715108 0.071964032 0.097169608 0.162067347 0.099552716

 Sapphire Textile
0.18

0.16

0.14

0.12

0.1

Sapphire Textile
0.08

0.06

0.04

0.02

0
2014 2015 2016 2017 2018
 Debt ratio

Sapphire Textile 2014 2015 2016 2017 2018

total debt(total - 8,709,935,110 13,717,633,508 16,896,675,721 25,738,100,768 26,307,895,833

equity)

total assets 22,050,550,287 28,087,804,661 31,800,656,888 42,532,024,018 42,330,151,035

Debt ratio 0.394998537 0.488383969 0.531331028 0.605146389 0.621493077

0.7
Sapphire Textile

0.6

0.5

0.4

0.3
Sapphire Textile

0.2

0.1

0
2014 2015 2016 2017 2018
 EPS

Sapphire 2014 2015 2016 2017 2018

Textile

net income 983,404,894 1,034,135,461 1,448,214,006 2,721,746,595 1,595,059,020

issued share 20,083,140 20,083,140 20,083,140 20,083,140 20,083,140

EPS 48.96669017 51.49271782 72.11093514 135.5239567 79.42279046

 Sapphire Textile
160

140

120

100

80
Sapphire Textile

60

40

20

0
2014 2015 2016 2017 2018
 Return on investment
Sapphire Textile 2014 2015 2016 2017 2018

Profit after 983404894 1034135461 1448214006 2721746595 1595059020

taxation for the
year

total fix assets 13726530636 18880695250 20217498410 28501663018 26982905163

Return on 0.07164264 0.054772107 0.071631711 0.095494308 0.059113687

investment
 Sapphire Textile
0.18

0.16

0.14

0.12

0.1

Sapphire Textile
0.08

0.06

0.04

0.02

0
2014 2015 2016 2017 2018
Operating return on assets

Sapphire Textile 2014 2015 2016 2017 2018

Profit from 1985976417 1847805762 2609779353 3944309779 3340232478
operations
TOTAL ASSETS 22050550287 28087804661 31800656888 42532024018 42330151035
Operating return 0.09006471 0.065786763 0.082066838 0.092737411 0.078909061
on assets
 Sapphire Textile
0.1

0.09

0.08

0.07

0.06

0.05
Sapphire Textile

0.04

0.03

0.02

0.01

0
2014 2015 2016 2017 2018
 Cash Ratio

Sapphire Textile 2014 2015 2016 2017 2018

cash + Market 878,751,999 1,155,391,157 1,856,551,777 1,733,821,338 1,741,048,628

security

total current 5,944,456,219 7,800,847,121 9,676,419,041 11,806,321,170 12,971,562,256

liabilities

Cash Ratio 0.147827146 0.148110986 0.191863516 0.146855342 0.134220427

 Financial leverage Ratio

Sapphire Textile 2014 2015 2016 2017 2018

total equity 13340615177 14370171153 14903981167 16793923250 16022255202

TOTAL ASSETS 22050550287 28087804661 31800656888 42532024018 42330151035

Financial leverage 0.605001463 0.511616031 0.468668972 0.394853611 0.378506923

Ratio
 Sapphire Textile
0.7

0.6

0.5

0.4

Sapphire Textile
0.3

0.2

0.1

0
2014 2015 2016 2017 2018
 Account Payables Days

Sapphire Textile 2014 2015 2016 2017 2018

account payable 2,036,146,471 2,316,663,831 2,525,623,858 3,224,402,305 3,867,282,911

total purchase 15,636,504,239 13,833,049,295 13,719,911,307 15,425,588,394 17,235,900,373

total purchase 42839737.64 37898765.19 37588798.1 42261886.01 47221644.86

/365

Account Payables 47.52938704 61.12768633 67.19086498 76.29575036 81.89640413

Days
 Sapphire Textile
90

80

70

60

50

Sapphire Textile
40

30

20

10

0
2014 2015 2016 2017 2018